Timeshare Information

From the way it looks, the timeshare industry is getting back on track. Commercial construction and investment transaction volume in the hospitality sector is up, travel providers are joining forces to be able to offer their members more destinations, timeshare companies are coming up with more ways to entice members with value add-ons, and hiring is on the upswing.

Rumor #1

The folks from Festiva and Travel to Go are teaming up to give their members more destination options. The informal relationships should give both companies an edge up on the competition. Festiva, billing itself as one of the most successful privately held vacation ownerships in the country, currently has over 95,000 members. The Orlando based company has a number of resorts in the United States and the Caribbean, and a fleet of luxury yachts.

Travel to Go, a family owned and operated business, is a membership vacation services company with nearly 60,000 members. The company has recently upgraded and streamlined its online member support services paving the way for members to have more options, and enhanced products and services. Working together, the two companies could benefit everyone by bringing a more positive awareness of the value of membership travel and increasing membership referrals.

Rumor #2

Timeshare companies are seeking to attract new members and maintain current members with value-added products. Occidental Vacation Club is working to make their program more experiential. First it was their Yacht Club, which offers members access to an exclusive yachting experience. Members have access to a private yacht with a professional crew for a 4-6 hour cruise. They are treated royally with superior service, champagne, and other enticements.

Currently the company is offering members "Route of Wine," a 6 day, 5-night tour of San Francisco, and the wine country of Napa and Sonoma. Highlights of the upscale tour include a private tour of San Francisco, a ride on the Napa Wine Train, visits to top wineries for wine tastings and tours, talks with the winemakers, and winery owner hosted dinner with wine pairings.

Rumor #3

Hiring is on the upswing. Breckenridge Grand Vacation Club, recognized as one of the most successful independent developers in the industry, launched an aggressive sales PR campaign and has already filled their quota for agents. This comes after recently starting work on a new 75-unit timeshare. Now their website lists openings for new hires for operations staff from housekeeping to front desk.

Wyndham Worldwide, an industry and market leader, is expanding their employee pool too. Hiring was spurred by this year's third quarter acquisitions of 57 new properties by RCI, a global leader in vacation exchange, and part of the Wyndham Worldwide family of brands.

Another part of the world that is going gangbusters is the Canary Islands where recruiting is high for multi-lingual OPCs and sales agents.

If recruiting is an indication of the health of vacation ownership, it certainly is looking more vibrant every day.

American Resort Development Association's (ARDA) Fall Conference was held last week at the Fairmont Hotel in Washington, D.C. The conference is a time where (unlike the U.S. Congress!) competition is put aside, and people share ideas and best practices. During the conference, ARDA shared the progress it has made in legislation for the year. Attendees are given up-to-date analysis of the implications of industry, economic and political trends on owners, developers and consumers. Since this is a working meeting, ARDA Committees meet at this time to strategize for the upcoming year about policies affecting the industry.

One of the Busiest Years Ever for ARDA

Thursday's meetings kicked off with Howard Nusbaum, ARDA's President & CEO, moderating a discussion of the new VacationBetter.org site.  In an opening comment he stated, "It has been one of the busiest years ever for us in pushing and strengthening legislation for the benefit of timeshare owners. We have advocated for owners in 14 states this year, all the way from Arkansas to West Virginia, with the thrust of our efforts focused on providing specific guidelines related to resale and transfer company legislation."

VacationBetter.org

ARDA's communications staff, communications committee leadership, PR consultants and web design consultants talked about the VacationBetter.org site's dynamic new look and feel. Participants got a sneak peak at the new site before it goes live. All noted the increased interactivity credibility, and user-friendliness of the site set to launch in January.

Vacation Club Task Force

Suppliers and Design and Construction committees got some special love during the conference. With consolidation of industry, those wishing to forge relationships with developers got some extra "oomph" from their specialized committee groups. Even the Vacation Club Task Force is its own entity, and is drawing up a code of ethics to help protect the vacation experience for owners and the entire vacation industry.  Travel to Go's Tommy Middaugh sits on the task force and is one of the people instrumental in pushing for the standard of ethics for the travel clubs.

Health Care and Immigration Reform

In this year's conference, several influential industry leaders and supporters were keynote speakers. Senator Kelly Ayotte, (R-NH) spoke at the legislative luncheon addressing health care and immigration reform, two issues of great concern to resort developers. (Ayotte has 27 ARDA member properties in her home state.) Ms. Ayotte expressed her opinion that the government shut down was "dumb", and that sequester caps across the board is not good business. Ms. Ayotte believes there will be a funding bill by the end of the year.

In a question and answer session from the audience, an audience member asked if she expected a 3rd party movement. To which Ms. Ayotte responded, "Not one that could win." Her answer was "no" to a question of was there any fear of back channel funding to insurance companies.

Howard Nusbaum, President of ARDA, asked,  "How can we support moderates?" Ms. Ayotte told the audience to get engaged and not just with resources. "Don't just go along to get along. Make choices and support everyone." When Tim Wilson, publisher of Resort Trades, asked if she thought that the country might be moving toward a single party since the Republicans are in disarray. Ms. Ayotte responded that she thought Republicans needed a unifier. "It is time to stop fighting and remember what we have together."

Chairman's League Breakfast

Charlie Cook, who bills himself as the "Political Prognosticator", was the featured speaker at Chairman's League Breakfast on the last day of the convention.  Mr. Cook in actuality is the Editor and Publisher of the Cook Political Report and a columnist for National Journal. Mr. Cook called ARDA, "the most powerful group in Washington you've never heard of."

Find out more about ARDA's Conference at: ARDA.org

When it comes to building points and consumer loyalty, the timeshare industry hasn't been quick to engage the concept. Now it seems, the value is making itself known.  Here are but a few companies who have successfully incorporated a loyalty program into their business model.

Occidental Vacation Club

Occidental Vacation Club has integrated the Leisure Logistics platform into its Leisure Points program. Members can earn points for booking certain trips such as a Wine Tour next spring, and use those points to purchase a variety of travel and non-travel related items. Eventually, the plans call to roll the system out to include owner referral and other marketing programs.

International Cruise & Excursions, Inc. (I.C.E.)

International Cruise & Excursions, Inc. (I.C.E.) was one of the first companies to implement a program of innovative sales, marketing and loyalty programs. Partnering first with Carnival Cruise line they successfully delivered cruise vacations to vacationers worldwide through cruise packaging, incentives and fulfillment. In 1999, other major cruise lines came aboard, as did new partners in and out of the travel market. I.C.E's commitment to technology driven products and services led them to develop points-based currency conversion software and to deliver vacation benefits through an automated fulfillment platform for use by its business partners and its own operation.

I.C.E's Lifestyle Collection has allowed the company to expand further into the value-added area. The Lifestyle Collection provides a broad range of fully branded products and services to its partners including golf, ski, spa, wine, shopping/merchandise, entertainment, hotel, car, air, resort and more.

Westgate Resorts

In June of this year, Westgate Resorts launched Westgate Rewards MasterCard, their new co-brand credit card. With the new card, cardholders will receive full account service, including online account activation and management, flexible financing options, and marketing communications to support repeat purchases and enhance customer loyalty. New Westgate resort owners will even be able to put their timeshare down payment on the card, on a 6-month deferred interest promotion payment plan.

Westgate Rewards MasterCard features a points-based loyalty program for all card purchases and more incentives when using the card for transactions, on and off the property. Users can redeem every 2500 points earned for a $25 rewards certificate. The certificate can be used for discounts on resort amenities, accommodations, maintenance and tax fees, and other special offers.

"Our goal is to provide our owners tremendous value both during their vacation as well as all 52 weeks of the year," said Mark Waltrip, Chief Operating Officer of Westgate Resorts. "The Rewards MasterCard is the foundation of our loyalty program that will allow our owners to offset the cost of their timeshare ownership and enhance the quality of their future vacations at Westgate."

Loyalty 360

Perhaps the best way to end a blog on building customer loyalty is with a quote from a group that knows a thing or two about loyalty building, Loyalty 360, the Loyalty Marketer's Association:
"Loyalty marketing, engagement marketing, experiential marketing...no matter what you call it, it's no secret that today, more than ever, companies need to create and nurture positive relationships with customers in order to thrive. Loyalty marketing today goes beyond traditional points and rewards programs. As companies continue to strive for the ultimate customer relationship, loyalty marketing is continually evolving to include engagement marketing, customer relationship management, experiential marketing, voice of the customer, data analytics and more. No matter the industry or size of a company, a loyalty strategy should be a top priority."

Before the real estate market fell into an abyss a few years ago, fractional ownership was described as timeshare on steroids.  Because of its narrow audience and high-ticket prices, fractional properties were among the first in resort real estate to take a tumble. It looks like they may be coming back.

Prevailing Optimism

Fractional ownership continues to be a vacation ownership option in the U.S., Europe, and Canada. It also is an option in Antigua, Mexico, and the Dominican Republic. Recently, fractional ownership came back into the picture in the Turks & Caicos with the passage of the Fractional Ownership Bill.  Rufus Ewing, Premier of Turks & Caicos called the bill, “a vision of his government to help empower the people, drive development and stimulate the economy. At a fraction of the cost our people can become property owners and have increased equity that would allow them to have access to financing that otherwise they perhaps would not have had."

News from the website Timeshare Broker Beat is also optimistic. A recent post says fractional property ownership is on the rise and lists the benefits of this type of ownership:

1. Owners have more time per year to vacation. Fractional vacation properties offer more weeks at a time.

2. Fractional properties tend to be high-end and have many amenities.

3. And perhaps the best benefit of all... savings. In fractional ownership, the cost of the property is shared by a number of people. In most cases, after paying the initial cost, fractional owners will only have to pay the annual maintenance fees.

A pioneer in the shared vacation industry is Carl Berry, CEO of Star Resort Group. Sales at the company's fractional ownership resort, Seahorse Beach Club on the Texas Gulf Coast, is up and going. According to Carl's September blog, "Seahorse is 'knocking down its first sales.' Seahorse's houses are available on either a whole-ownership, or a fractional-ownership model designed in the tradition of the fully deeded luxury Private Residence Clubs around the world. Members enjoy the benefits of vacation home ownership but with far fewer upfront and ongoing costs and virtually none of the headaches."

Defining Terms

Understanding and defining the various forms of fractional ownership can be confusing. Here are some brief explanations that might be helpful in wading through the different avenues of ownership:

Timeshare

Timeshare may be the most misunderstood term in the fractional vacation property lexicon. Under the common legal definition, timeshare describes any arrangement where usage of property is shared based on time, and there is no reliable distinction between properties marketed as timeshares, fractionals, or private residence clubs. Timeshares are deeded and many fractionals and private residence clubs are not.  Yet, others are.

Fractional Ownership, Co-Ownership and Shared Ownership

The terms fractional ownership, co-ownership, and shared ownership, can describe any arrangement where two or more people share ownership of something, regardless of whether they have a time-based usage arrangement. The term fractional ownership seems to be more commonly used in the U.S. for time-based sharing of vacation property. Co-ownership and shared ownership are more commonly used to describe these arrangements in other English-speaking countries.

Private Residence Club, Destination Club and Vacation Club

Generally, but not always, private residence clubs involve equity ownership (though not necessarily deeded ownership) of a specific property with 4-13 owners per home. These clubs are usually on the high-end of fractional ownership options. Destination clubs and vacation clubs commonly involve multiple homes in different locations. Owners are allowed to use any of the homes in the club. There are equity and non-equity variations.

Condominium Hotels, Condo Hotels and Condotels

The above terms usually describe a hotel that has been subdivided into condominiums where each owner owns all of a specific condominium. This set up has run into numerous legal sticking points.  One of the most recent was the Hard Rock Hotel in San Diego which had numerous unhappy owners, yet survived the law suit.  Management operates the hotel and shares the proceeds with the condominium owner. The owner can sometimes use the property free of charge, but sometimes there's a fee. When there is only one owner per condo, the arrangement is not fractional. The term fractional ownership is sometimes used when the hotel has not been subdivided, and the owners own a percentage of the whole development but do not actually own a condominium.

Taking the Plunge into Fractional Ownership

If you are buying or thinking of buying a fractional ownership, you might want to take a look at the Fractional Ownership Guide developed by the Sirkin Fractional Lawyers group. This guide covers the top 10 issues related to shared ownership. Many of those nagging legal questions are answered in this publication.

If timeshare is doing well...is it limited to one area? We think not. Reports show there are definite sparks of life in the industry that was hard-hit by the recession, and some of the areas where you'll find those sparks may surprise you.

Las Vegas 

Las Vegas is seeing its biggest growth since 2008. According to the Las Vegas Business Press, more than 1,000 units have been added, or will be added, to the Las Vegas timeshare sector. (In last week's blog we talked about construction resuming on Desert Blue, a 281 unit Vegas timeshare started by Wyndham Worldwide.)

Says Ed Kinney, a Marriott Vacations Worldwide spokesman, "We are seeing a continued pattern of increased travel. There is a tremendous interest, and Las Vegas has always been a popular destination." Last month, the company topped the third 37-floor tower of its off-strip Grand Chateau, which added 223 units.

Hilton Grand Vacations added to its luxury timeshare portfolio with the purchase of 300 units at the Trump International Hotel. At Grandview at Las Vegas near South Point, construction of a new tower is expected to increase its number of units from 1,556 to 1,856 according to the LVCVA survey.

Other parts of the world are also seeing an industry upswing:

Canada

With CRDA VO-Com running this week in Vancouver, it's hard not to hear talk about Skyline Vacation Club, Ontario’s first drive-to vacation club. Only days ago, Skyline International Development announced their new lifestyle division, a members-only, points based vacation club. The club offers members a choice of vacation experiences from 3 different categories. The Urban Collection, with locations in downtown Toronto (Pantages Hotel and Cosmopolitan Hotel), the Resort Collection, located 1-2 hours from Toronto (Horseshoe Resort and Deerhurst Resort), and the International Collection, featuring over 4,000 vacation options around the world through a partnership with RCI.

Gil Blutrich, President of Skyline International Development, says, "Skyline Vacation Club elevates the guest experience by providing connectivity between city and country, urban and resort."

Ireland

Reports from a survey by Failte Ireland, (Ireland's National Tourism Development Authority) show Ireland's tourism is 'on the turn' (Irish speak for upturn). Business sentiment is at its highest since the economic crash in 2008. The report goes on to say that occupancy was up in over two-thirds of hotels, 58% of guest houses, and 46% of B&Bs.  Good weather was cited as a contribution to the up turn, but also 6 of 10 businesses cited the Government's Gathering Initiative (Ireland's biggest ever tourism initiative) as a factor for increased trade.

New Zealand

All those who attended NZHOC back in May know that New Zealand is facing its timeshare challenges head on. The Australian Timeshare Holiday Ownership council has representatives from 3 main timeshare regions.  Two of the regions are on North Island, in the Bay of Islands Region, and in the Taupo Region in the center of North Island. The 3rd region is in Queenstown where 9 resorts are located.

A New Zealand astro-tourism operator is hoping to take advantage of the "star gazing craze."  Every year tens of thousands of tourists flock to Lake Tekapo, where Canterbury University's Mt. John Observatory resides, to see Southern Stars, the Milky Way, and meteor shows. Graeme Murray, founder of the astro- tourism concession Earth & Sky, wants to build a $5 million "window to the universe" facility on the lake's shore to cater to the needs of those star-gazing tourists.  Earth & Sky will be just a part of a wider development plan around Lake Tekapo including hotels, shops and a supermarket that Mr. Murray hopes to get going.

Apparently, astro-tourism, which has taken off in Asia too, has immense potential for the region as it means tourists need to stay overnight to watch the stars.

Is the market upswing here to stay? 

There are still a few worries. Lisa Ann Schrier, executive director of the National Timeshare Owners Association is concerned about "the amount of timeshares coming online all at once instead of sticking a toe in the water to see if it will fly or not." But she adds, "the major players seem to think there is still a lot of life in the old warhorse."

We'd like to know what you think. Please post your comments below.

As the Economy Goes So Goes the Hospitality Industry 

There is good news for the timeshare industry, which was hard hit during the recession when travelers postponed vacations and held back on new purchases.  Recently there are indications that companies are showing they can compete, thrive, and do better.

Industry leaders are seeing a recovery in the resort industry. According to a report from Jones Lang LaSalle, 'the resort sector accounts for 18.4 percent of total investment transaction volume this year in the hospitality sector." The report goes on to say that "the increase is due to $2.46 billion of transactions through year-to-date August 2013, the highest volume in the segment since 2007, and more than triple that of 2012."

The Jones Lang LaSalle report also states, "even though the resort market is taking off, not all assets are ready for the flight." "During the downturn, resorts held off on renovations. Now owners may be able to add amenities and create a more differentiated product. Companies who are able to go to market in the next three years with a renovated product and capitalize on the on the upswing with added value, may attract more investors."

FARROW Commercial Construction, a hospitality construction company in Santa Rosa, California understands the upswing in the industry. The nationwide company reports revenues up 300% over last year at the half-way mark.

John Farrow, President and CEO of FARROW says, "We are growing again. After the few soft years where not many were breaking down our door to get either refurbishments or ground-up construction done, we are very happy to report that the tide has changed and we are once more on the move." Farrow attributes his company's growth surge to competitive pricing, faster timelines and strong communication.

Another turn-around happened recently when construction resumed in Las Vegas.  Construction started up on a Wyndham Worldwide project, a 281 unit timeshare called The Desert Blue.  Work on the project had halted four years ago.

Breckenridge Grand Vacations has broken ground on a very high end, luxury 75-unit timeshare called the Grand Colorado Resort. According to Rob Millisor, an owner/developer of the company, “The Grand Colorado will be the pinnacle resort within this community. With only 75 residences, it will become the most exclusive fractional/timeshare resort to own." The company is also showing its industry optimism by looking to hire new sales representatives. “We have more qualified prospects than we can currently handle," says Dave Stroeve, Vice President of Sales and Marketing.

Cautious Optimism?

Though there are definite signs of upswing in the hospitality industry, should we remain cautiously optimistic?  We see how certain events can affect the industry. The current government shutdown has caused the closure of many top tourist attractions and, in turn, caused consumers to cancel travel plans. The industry needs to be prepared and anticipate future events that could potentially impact timeshare growth.

Yes! This is the time of year that the timeshare industry begins a series of events to honor its members who have achieved the highest level of excellence in the industry.

Vacation Ownership Conference (VO-CON) - October 22-23, 2013

Kicking off the start of the season is a new comer to the awards game. The Canadian Resort Development Association(CRDA) presents the Vacation Ownership Conference (VO-CON).  With its theme "Exploring the Business of Vacations,"  it's billed as a conference for understanding the current state of the
industry, and where it's heading in the future.

The finalists are already posted for VO-CON's first annual Cornerstone Award. This award was established to honor a vacation ownership professional, company, resort or HOA whose accomplishments and dedication help to lay the foundation for the success of the industry in Canada. The three finalists are...Grand Pacific Resort Management Canada, Club Intrawest, and Whistler Vacation Club.
Vote at the VO-CON web site.

Global Networking Expo (GNEX) - February 9-12, 2014

GNEX will hold its annual "Global Meeting of Minds" conference in February. This event for the timeshare and fractional ownership industry attracts senior level executives from more than 100 companies from all over the world, and focuses heavily on networking.

The 2014 Perspective Magazine Awards are given out at GNEX conference's Wrap Party. On October 7, the magazine began taking nominations for the awards. Winners are selected by a combination of judging panel and online voting by industry professionals. For nomination categories guide and to enter: go here.

American Resort Development Awards (ARDA) - April 6-10, 2014

The granddaddy of all the awards programs, and the most notable, is ARDA's annual awards program better known as the ARDY's. This award program recognizes the best nominees in categories that include overall professional excellence, outstanding sales and marketing achievements, product design, advertising, and staff. The prestigious ARDA Circle of Excellence (ACE) awards honor "those who have attained the very highest level of excellence in the resort industry, and whose accomplishments and dedication spur the industry
to new heights."

The nomination guide is online now.  The final deadline for submitting an entry is Friday, January 3, 2014 and awards will be given out during ARDA's Annual Convention on April 9.  The convention is the premier annual gathering for timeshare professionals from around the world. According to ARDA, the convention's forums, networking events, and receptions offer key opportunities for attendees to connect with industry leaders from all over the world. The 40+ educational sessions are the most comprehensive way to stay up on trends and best practices.